Comments on: Real Estate Crash

By: visionvictory

visionvictory — Mon, 08 Feb 2010 09:14:38 +0000

No, the fed cuts …
No, the fed cuts will only make the situation worse, much worse. Instead of a depression, were going to have a depression with hyper-inflation. It’s impossible to re-inflate the housing bubble, the fed can drop rates to ZERO. The wacked out loans are never coming back, it’s over. I’m sorry to tell you, but there won’t be a property in Rancho cucamonga over 150,000 when this crash hits bottom.

By: unreallogic

unreallogic — Mon, 08 Feb 2010 09:14:38 +0000

Thx, so will the …
Thx, so will the fed cuts do anything? I purchased my home last year for 1.2 million and now my home is only valued at 600,000. I’m a Rancho Cucamonga California believer :{

By: visionvictory

visionvictory — Mon, 08 Feb 2010 09:14:37 +0000

Homes are going to …
Homes are going to go for about 3X the average income. So for Los Angeles County where the average income is around 55,000, we will see the average home in LA county return to about 165,000. Right now its around 500,000, so we have a long way to go. We’ve barely scratched the surface when it comes to the housing collapse.
Thx for the comments.

By: visionvictory

visionvictory — Mon, 08 Feb 2010 09:14:37 +0000

All U.S. homes are …
All U.S. homes are priced artificially by the reckless lending standards of 2002-2007. The no doc, zero down, not only sent prices through the roof, but built up a false demand for homes. As the U.S. returns to traditional financing, we will see homes go back to traditional prices. This will wipe out all of the gains during the boom years.

By: landongendur

landongendur — Mon, 08 Feb 2010 09:14:37 +0000

In my Canadian city …
In my Canadian city, Regina, housing is through the roof. Houses that are for sale for $89K now in Florence Arizona would easily be sold for $400K in my winter-common city right now.

Are you saying that housing in the USA is actually going to go LOWER than current pricing?? I’m keeping my eyes peeled for sure.

By: jchahine

jchahine — Mon, 08 Feb 2010 09:14:36 +0000

Vision: if the avg …
Vision: if the avg income in Cali is 55K and you mulitply 3X, then the avg home price will stabilize at 165K. But AVG means some will be lower, and some higher. You are taking the Avg and making it the ceiling in your advice to unreallogic. So she/he can take great confort to know they may only lose 1 million not 1.05 million!

By: landongendur

landongendur — Mon, 08 Feb 2010 09:14:36 +0000

I like that 3X …
I like that 3X total household income rule. Thanks for your insights.

By: landongendur

landongendur — Mon, 08 Feb 2010 09:14:35 +0000

Oh my goodness …
Oh my goodness jchahine! I just checked out the mls listings there!! 47 pages of homes for sale just in the $100-$150K region! And some of them are incredible deals (although not nearly as rock-bottom as the ‘States).

By: landongendur

landongendur — Mon, 08 Feb 2010 09:14:35 +0000

Ouch, really? I …
Ouch, really? I should check out the mls listings there. I think living in Windsor would be cool.

Western Canada has definitely gone crazy though (oil boom?).

By: jchahine

jchahine — Mon, 08 Feb 2010 09:14:35 +0000

landongendur: …
landongendur: Windsor ONT housing is suffering like the US right now because they are along our border…